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Tariffs Continue to Whipsaw

On April 2, the White House issued a sweeping set of “reciprocal tariffs” on 180 countries. See NPGA’s 040225 Reciprocal Tariffs Fact Sheet for details. A country-by-country list of rates is available here. (Notably, the April 2 orders did not modify tariffs on Canada, Mexico, steel, aluminum, or automobiles.) On April 3, the White House clarified that energy, including propane, is exempt from the “reciprocal tariffs.” See p. 5 (HTSUS 27111200 & 27111900) of Annex-II to April 2 EO – Exempt HTSUS Products

On April 9, the White House issued a significant Reciprocal Tariff Modification Executive Order. This modification:

Pauses tariffs above 10% on countries other than China, Canada, and Mexico for 90 days; those countries will have 10% tariffs for the next 90 days.
In response to China raising its tariff rate on U.S. goods to 84%, the U.S. increased China’s reciprocal tariff rate rises to 125% (in addition to the 20% from February/March). Accordingly, the U.S. tariff rate on Chinese goods is 145% (+ any section 301 duty + any base tariff rate).
Does not impact U.S. tariffs on Canada, Mexico, steel, aluminum, or automobiles.

On April 10, U.S. Customs & Border Patrol issued Guidance on Reciprocal Tariffs.

Updated: April 8, 2025, 11:02 AM ET

Propane Exempt from Liberation Day Reciprocal Tariffs

The Administration’s April 2, 2025 Executive Order on reciprocal tariffs made clear that certain categories of goods would be exempt from all such tariffs, including energy and energy products. On April 3, 2025, the White House released the full list of exempt products covered by the Executive Order; it includes propane and LPG. See p. 5 (HTSUS 27111200 & 27111900) of Annex-II to April 2 EO – Exempt HTSUS Products

UPDATED: APRIL 2, 2025, 8:20 PM EDT

Liberation Day Tariff Announcement

Late this afternoon, President Trump spoke from the Rose Garden on sweeping new tariffs the United States is enacting.

EO Reciprocal Tariffs April 2025

Reciprocal Tariffs Fact Sheet

Tariffs on goods from Canada and Mexico remain unchanged. That is, there is a 10% tariff on Canadian energy products, 25% on other Canadian goods, and 25% on all Mexican goods, but the USMCA exemption applies. Propane from Canada qualifies under the USMCA, so NPGA expects no tariffs to apply on Canadian-supplied propane to the U.S.

On almost every other major country, the U.S. is implementing “reciprocal tariffs.” There will be a baseline rate of 10%, but many countries will face materially higher, individualized rates. A country-by-country list of rates is available here. For example, the tariff on EU goods is 20% and on UK goods is 10%. The 10% baseline tariffs go into effect on April 5, 2025 and the higher reciprocal tariffs go into effect on April 9, 2025.

The U.S. may increase a country’s tariff rate if such trading partner retaliates or decrease the tariff rate if such trading partner takes significant steps to remedy non-reciprocal trade arrangements and aligns with the U.S. on economic and national security matters. The reciprocal tariffs do not stack on steel/aluminum articles or autos/auto parts already subject to Section 232 tariffs. However, they do stack on base tariff rates and section 301 tariffs.

NPGA’s trade counsel will analyze all of the official White House documents in the coming days and draft a fact sheet that will be posted. NPGA’s President and CEO, Stephen Kaminski, will host a live tariffs education session during the NPGA Expo in Charlotte at 8am ET on Saturday, April 5th.

Updated: March 12, 2025, 8:55 PM EDT

Canada’s U.S. Surtax Order (Steel & Aluminum 2025) and EU’s Countermeasures

Canada’s United States Surtax Order (Steel and Aluminum 2025), issued on March 12, 2025, places a tariff (“surtax”) of 25% on a significant number of U.S. goods – including numerous steel and aluminum products. These tariffs will enter into force on March 13, 2025. Tariff code 7311.00.00 (“Containers for compressed or liquefied gas, of iron or steel”) is included on Canada’s list.

The European Union (EU) has announced that it will impose countermeasures covering €26 billion worth of U.S. goods in two steps. First, on April 1, the EU will allow a lapse in the suspension of already existing, but currently suspended, EU countermeasures on certain U.S. products. Second, the EU has announced that it plans to put forward a package of additional countermeasures that will come into force by mid-April.

Updated: March 6, 2025, 5:33 PM EST

Pause on Country-Level Tariffs for USMCA Compliant Goods from Canada and Mexico, Including Propane

On March 6, the White House announced that products of Canada and Mexico that satisfy the rules of origin of the United States-Mexico-Canada Free Trade Agreement (USMCA) will be eligible to enter the United States without being subject to the country-level tariffs that went into effect on March 4. The announcement does not have an end date to the pause, but it is currently being widely reported that the pause is set to expire on April 2.

Please note, this pause does not impact the separate 25% tariffs on steel and aluminum.

The USMCA rules of origin are fairly complex and can be found in 19 CFR Part 182 Appendix A. NPGA encourages all importers of record to seek legal advice, but NPGA anticipates that most propane from Canada will be able to qualify for USMCA origin, and therefore for duty-free treatment under the pause. However, importers should consult counsel about their specific situation.

Canada’s Finance Minister has announced that Canada would delay implementation of a portion of previously announced retaliatory tariffs. Mexico has not yet implemented any retaliatory tariffs.

Updated: March 6, 2025, 9:00 AM EST

U.S. Enacts New Tariffs

On March 4, the White House enacted a sweeping set of new tariffs effective immediately:

10% on Canadian energy resources
25% on all other Canadian goods
25% on all Mexican goods
an additional 10% on Chinese goods

You can find guidance from U.S. Customs and Border Protection on implementation of the duties on Canadians goods here and guidance on implementation of duties on Mexican goods here.

These tariffs stack on top of 25% worldwide tariffs on steel, aluminum, and certain derivative products, which are effective on March 12, 2025.

Additionally, the Trump Administration has indicated that reciprocal tariffs are likely to be enacted effective April 2, though specifics are not available at this time.

No exclusion process is available for any of these tariffs.

NPGA hosted a webinar with trade counsel and NPGA members related to tariffs on propane from Canada on March 5. And NPGA has a webinar scheduled with trade counsel for March 12 related to tariffs on parts and equipment.

NPGA trade counsel has also crafted fact sheets on both the Canadian/Mexican tariffs as well as the worldwide steel and aluminum tariffs.

NPGA will continue to educate DC policymakers on the impacts these tariffs have on the propane industry and we will continue to align with our partners, including the Canadian Propane Association (CPA) and like-minded industries. A joint NPGA-CPA statement is available for dissemination.